LWB writes a success story: Largest new construction program since its founding

For the seventh consecutive year, the LWB has made a profit. The operating profit was EUR 9.1 million (2016: EUR 11.5 million). "In 2017, the LWB continued to perform all its tasks for Leipzig and once again presented the city with very good financial statements," says Ute Schäfer, LWB Director of Finance and Asset Management. With an average rent per square meter (excluding heating) of 5.14 euros (2016: 5.06), the LWB also remained below the Leipzig average. More than 33 percent of all LWB apartments are in the KdU-eligible segment (KdU: accommodation costs).

"Our housing company is writing a success story," said Leipzig's Lord Mayor Burkhard Jung after the partners' meeting. "In a rapidly growing city, a municipal housing company that assumes social responsibility is invaluable. Affordable housing is one of the greatest challenges for our city in the coming years and the LWB is an important partner in the city on this issue. With it we can implement the country's development programs. But these support programs of the Free State must grow as fast as Leipzig. A first step has been taken, but much more must be done in the coming years.

By 2021, the LWB plans to invest some 200 million euros in the construction of more than 1,000 homes alone. This is the largest growth program since the company was founded at the turn of 1990/91: "Last year we also set the course for the planned growth course, particularly in new construction, in terms of personnel and planning," says Iris Wolke-Haupt, LWB Managing Director Housing and Construction. The Housing Industry and Construction Division was restructured and framework agreements were concluded with architects and planners. "We are currently preparing eight new construction projects. These projects should be completed by the end of 2021." Subsidies from the Free State of Saxony for rent-controlled apartments are to be used for at least 30 percent of the apartments.

At the same time, LWB is continuing the refurbishment of existing housing stock, including the prefabricated housing estates. Investments of around 54 million euros are planned in this area over the same period. Among other things, the LWB Supervisory Board recently gave the green light for four projects: Dölziger Weg 4 in Schönau, Ludwigsburger Strasse 2-8 in Grünau, Gersterstrasse 1-7 in Dölitz and the complex Schlehenweg 1-7/Heiterblickallee 28-34 in Paunsdorf.

In the south of Leipzig, the renovation of Richard-Lehmann-Strasse 39-43 is also planned. The refurbishment will continue in Bornaische Strasse, where the LWB has for many years supported a youth housing project of the Jugendhaus Leipzig e.V. / South Pole area and where the LWB residential school has been located since 2016. Planning is also underway for the redevelopment of Gerberstrasse 14-16, a block of 256 apartments bordering on the listed Hotel Astoria, which is to be redeveloped by a private investor in the next few years.

Leipzig is currently experiencing a construction boom that is reminiscent of the upswing after the fall of the Berlin Wall. As a result, building capacities are becoming scarcer and construction prices are rising. This is a major challenge, both in terms of new construction and renovation and repair work, emphasize both LWB managing directors.

The LWB is supporting the city not only by providing housing, but also by building social infrastructure. After the LWB inaugurated the first newly built day care center in the company's history in mid-2016, construction of two more day care centers began last year: The day care center at Brüderstrasse 18 (135 places) is scheduled for completion in the fall of 2018, and the day care center at Watestrasse 3 (167 places) is expected to be handed over to the executing agency at the beginning of next year. Two further day care centre projects are in the planning stage. Here, the day care centres are to be integrated into existing residential buildings.

"The LWB has once again presented an excellent balance sheet for 2017 and at the same time has ambitious plans," says Dorothee Dubrau, LWB Supervisory Board Chairman and Mayor of Leipzig: "The company is excellently equipped for the future. These financial statements are the basis for the LWB to continue on the path that is important and right for the city of Leipzig.

Keyword LWB:
- The LWB is a municipal enterprise and was founded at the turn of 1990/91.
The sole shareholder is the City of Leipzig.
- With 35,156 residential units (2016: 35,070), the LWB has a market share of ten percent in Leipzig.
- The vacancy rate in 2017 was 4.02 percent (3.66 percent).
- Rental income in 2017 amounted to EUR 125.3 million (EUR 122.6 million).
- The net profit for the year rose to 36.2 million euros (2016: 26.6 million euros). Main reason for
the strong increase is the rise in the standard land values in the city of Leipzig.- The LWB has fixed assets of EUR 1.034 billion (EUR 1 billion).
- In 2017, the equity ratio rose by 2.3 percentage points to 37.6 percent compared with the previous year.
- The 439 active employees include 30 trainees (430).
- The construction volume in 2017 increased by around 40 percent to EUR 63.9 million.